Apple partner GT Advanced Tech released a statement on Monday, announcing that it is filing for Chapter 11 bankruptcy. The company is Apple’s supplier for sapphire glass used for the camera lens cover and the Touch ID sensor found in current iPhone models.
Filing for Chapter 11 bankruptcy will allow the company to continue normal operations until it can make arrangements with creditors. The company had $85 million in cash on hand as of September 28th. It will be seeking “debtor-in-possession financing,” which would provide the company with an immediate source of additional funds for day-to-day operations of the company.
It is unknown at this time what impact this may have on the company’s role as sole sapphire glass supplier to Apple for its iPhone and upcoming Apple Watch.
GT Advance Tech’s Press Release can be read below.
GT Advanced Technologies Inc. and Its Subsidiaries File for Bankruptcy Court Protection Under Chapter 11
Expects to Continue “Business As Usual” With Approximately $85 Million of Cash on the Balance Sheet and Plans to Obtain Debtor-In-Possession Financing
MERRIMACK, N.H., Oct. 6, 2014 (GLOBE NEWSWIRE) – GT Advanced Technologies Inc., (Nasdaq:GTAT), announced today that it had, together with certain of its direct and indirect subsidiaries (collectively, GT), commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire. GT expects the court will authorize the company to continue to conduct business as usual while it devotes renewed efforts to resolve its current issues and develops a reorganization plan.
GT indicated that as of September 29, 2014 it had approximately $85 million of cash. In addition, it is now seeking debtor-in-possession financing, which, once obtained, would provide the company with an immediate source of additional funds. These funding sources will enable GT to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations.
As a result of the filing, and as is customary with public companies, NASDAQ may temporarily halt trading in the company’s stock pending the receipt of additional information on the company’s financial condition. The company is cooperating with NASDAQ and will be providing any requested information as promptly as possible.
“GT has a strong and fundamentally sound underlying business,” said Tom Gutierrez, president and chief executive officer of GT. “Today’s filing does not mean we are going out of business; rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet.
“We are convinced that the rehabilitative process of chapter 11 is the best way to reorganize, protect our company and provide a path to our future success. We remain committed to our roots in innovation and our diversification strategy. We plan to continue to operate as a technology leader across our core set of businesses.”
The company indicated that it expects to provide additional details with respect to the chapter 11 filing as soon as they are available. More information, including access to court documents, can be accessed at www.KCCllc.net/gtat (court- appointed claims agent site); or www.nhb.uscourts.gov, the official Bankruptcy Court web site.
GT Advanced Technologies Inc. is a leading diversified technology company producing advanced materials and innovative crystal growth equipment for the global consumer electronics, power electronics, solar and LED industries. Its technical innovations accelerate the use of advanced materials, enabling a new generation of products across this diversified set of global markets. For additional information about GT Advanced Technologies, please visit www.gtat.com.